The Auditor-General is looking into why private landlords were paid up-to three thousand dollars per week for shoddy emergency housing

The emergency grant is usually for a motel while a permanent house is found.

But high demand caused it to be extended to private homes, costing 38-million over the past two and half years to June.

Monte Cecelia Trust chief executive Bernie Smith says the ministry's justification for the per-room rate is baffling.

He says the ministry reasoned it was easier to secure a three bedroom home rather than house a family in three separate motel rooms.

A three-bedroom house could bring in a rate of up to 150 per room, per night.